Tag: sub-division of journal - 2 (subsidiary books)

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Questions Related to sub-division of journal - 2 (subsidiary books)

Multiple choice book keeping and accountancy sub-division of journal - 2 (subsidiary books) introduction, meaning, types and advantages of subsidiary books journal proper or general journal meaning and types of subsidiary books

Goods brought in by the proprietor as his capital contribution are recorded in _______.

  1. Purchases Book.

  2. Cash Book.

  3. Journal Proper.

  4. None of the above.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

When a proprietor brings assets or goods as capital, it is not a purchase or a cash transaction. Such entries are recorded in the Journal Proper.

Multiple choice book keeping and accountancy sub-division of journal - 2 (subsidiary books) introduction, meaning, types and advantages of subsidiary books journal proper or general journal meaning and types of subsidiary books

A cheque of Rs.112 received from a debtor recorded twice in the cash book. When the balance as per Cash  Book is the starting point.

  1. Rs. 112 to be added

  2. Rs. 112 to be subtracted

  3. No adjustment is required

  4. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

If a receipt was recorded twice in the Cash Book, the balance is artificially inflated. To correct this when starting from the Cash Book balance, the amount must be subtracted.

Multiple choice book keeping and accountancy sub-division of journal - 2 (subsidiary books) introduction, meaning, types and advantages of subsidiary books journal proper or general journal meaning and types of subsidiary books

Goods sold for cash were returned by a customer but cash was not given immediately. This is recorded in ______________.

  1. Sales Book.

  2. Sales Return Book.

  3. Cash Book.

  4. Journal Proper.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The Sales Return Book is used for credit sales returns. Since this transaction involves cash and is not a standard credit sale return, it is recorded in the Journal Proper.

Multiple choice book keeping and accountancy sub-division of journal - 2 (subsidiary books) introduction, meaning, types and advantages of subsidiary books journal proper or general journal meaning and types of subsidiary books

A cheque of 3500 received from P. K. Jain a customer, endorsed in favour of P. C. Jain, a supplier. It is to be recorded in _________.

  1. Three Column Cash Book.

  2. Journal Proper.

  3. Bills Receivable Book.

  4. None of the above.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

An endorsement of a cheque received from a customer to a supplier does not involve the bank account directly in the books of the entity. Such transactions are recorded in the Journal Proper.

Multiple choice book keeping and accountancy sub-division of journal - 2 (subsidiary books) introduction, meaning, types and advantages of subsidiary books journal proper or general journal meaning and types of subsidiary books

Interest accrued for the month of March will be recorded in:

  1. Purchases Book.

  2. Sales Book.

  3. Cash Book.

  4. Journal Proper.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Accrued interest is an adjusting entry. Adjusting entries that do not involve cash or routine credit sales/purchases are recorded in the Journal Proper.

Multiple choice book keeping and accountancy sub-division of journal - 2 (subsidiary books) introduction, meaning, types and advantages of subsidiary books journal proper or general journal meaning and types of subsidiary books

Which of the following is the largest online travel service?

  1. Travelocity

  2. Orbitz

  3. Priceline

  4. Expedia
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Expedia is widely recognized as one of the largest online travel agencies globally, owning multiple brands like Hotels.com and Vrbo.

Multiple choice book keeping and accountancy sub-division of journal - 2 (subsidiary books) introduction, meaning, types and advantages of subsidiary books journal proper or general journal meaning and types of subsidiary books

A bill receivable of 1000, which was received from a debtor in full settlement for a claim of  Rs. 1100, is dishonoured. It is to be recorded in _______________.

  1. Purchases Return Book.

  2. Bills Receivable Book.

  3. Purchases Book.

  4. Journal Proper (General Journal)
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The dishonour of a bill receivable is a non-routine transaction that does not fit into the special journals for sales or purchases. Therefore, it is recorded in the Journal Proper.

Multiple choice book keeping and accountancy sub-division of journal - 2 (subsidiary books) introduction, meaning, types and advantages of subsidiary books journal proper or general journal meaning and types of subsidiary books

Journal proper is issued to record __________.

  1. All purchases of goods

  2. All sales of goods

  3. All business expenses paid in cash

  4. All adjusting and rectification entries
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A book maintained to record transactions, which do not find place in special journals, is known as journal proper. In order to update ledger account on accrual basis such adjusting entries are made at the end of the accounting period. such as rent outstanding, prepaid insurance, depreciation and commission received in advance. To rectify errors in recording transactions in the books of original entry and their posting to ledger accounts this journal is used. 

Multiple choice book keeping and accountancy sub-division of journal - 2 (subsidiary books) introduction, meaning, types and advantages of subsidiary books journal proper or general journal meaning and types of subsidiary books

The number of subordinates a superior can effectively handle is called ______________.

  1. Cooperation

  2. Coordination

  3. Supervision

  4. Span of control
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Span of control refers to the number of subordinates that a manager or supervisor can effectively manage or oversee.